Aninvestment promotion agency (IPA) is most often a government agency (or occasionally anon-profit organization functioning similar to achamber of commerce or business consulting corporation) whose mission is to attract investment to a country, state, region or city. They do this through the use of marketing activities by creating awareness about a location as an attractive destination for investment.[1] Generally, IPAs have four core functions: image building of FDI hosting country, investment generation, project management and aftercare services. While IPAs play an important role in attracting investment to developed countries[2] some IPAs have additional advocacy function.
The IPA does this by introducing investors with local suppliers (raw materials or other inputs); providing useful statistical data and business information such asmacroeconomic indicators (GNP,GDP,HDI,inflation etc.), labor productivity, average wages, attractive sectors of domestic economy; practical support like securing permits or completing other administrative obligations; and by managing anyinvestment incentives that the city, state or country may offer to foreign investors (companies or individuals).[3]